Strategies / Momentum / Stochastic Reversal With Range Position

Stochastic Reversal With Range Position

The strategy buys at market when the stochastic reversal state is bullish and a 10-bar range position reading is above 0.92, and sells short when both are bearish with the reading below 0.5. Open positions close when the two states disagree.

MomentumLong & shortSwingUSD/JPYDaily

n/aProfit factor

1,468,680Net profit USD

47.08%Win rate

754Trades

-437,000Max drawdown

1,948Avg trade

Best run of 2. USD/JPY, Daily, spread 1, from run sweeps:2026-10-11-USDJPY-D-opt.tsv:54.

Entry rules, long

The range position state turns bullish when its 10-bar reading is above 0.92 and bearish when it is below 0.5.
A long opens at market when both states are bullish and no long position is open.

Entry rules, short

The range position state turns bearish when its 10-bar reading is below 0.5 and bullish when above 0.92.
A short opens at market when both states are bearish and no short position is open.

Exit rules

An open short closes at market when the two states are no longer both bearish.

Test conditions

Period	Up to 2026-10-11
Instrument	USD/JPY, Daily
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-11

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	n/a	754	47.08	1,468,680 USD	-437,000
Nikkei 225	Daily	n/a	706	43.06	24,908 USD	-18,815

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Range Position
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE posoo = 0

ll = lowest[14](low)
hh = highest[14](high)

56 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

StochasticSMA

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Stochastic Reversal With Range Position in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 2 market and timeframe combinations. The best run by trade count was USD/JPY, Daily, with 754 trades.

How large was the drawdown?

The best run had a maximum drawdown of 437,000 USD at the tested position size, against a net result of 1,468,680 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

1.09 PF · 6,194 trades

ATR Momentum

Also a momentum strategy.

n/a PF · 15,021 trades

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs